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Pollution control

Stellantis Faces Factory Closures Due to CO2 Emission Targets

Strategic Insights

— 1 min read

Stellantis, the Franco-Italian automaker, is at risk of facing hefty European Union fines for not complying with CO2 emission targets, prompting its Europe Chief, Jean-Philippe Imparato, to warn of potential factory closures. As part of the EU's efforts to mitigate climate change, car manufacturers must sell more electric vehicles to reduce emissions. Stellantis has lobbied for more time to comply, with fines based on 2025-2027 emissions rather than just 2025. However, Imparato asserts that the targets are still unachievable, exposing the company to fines of up to 2.5 billion euros within two to three years.

Key Takeaways:

  • Stellantis' Europe Chief, Jean-Philippe Imparato, warned that the company may have to close factories due to the risk of EU fines for not complying with CO2 emission targets.
  • European car manufacturers must sell more electric vehicles to cut CO2 emissions, with fines based on 2025-2027 emissions rather than just 2025.
  • Stellantis' CO2 emission targets are considered unachievable, putting the company at risk of fines of up to 2.5 billion euros within two to three years.
  • Imparato stated that Stellantis would either have to double its electric vehicle sales, which is impossible, or cut the production of petrol and diesel vehicles to improve the energy mix of its fleet.
  • The company's Italian van-making plant in Atessa was mentioned as a potential facility that could be closed.
  • Stellantis has lobbied for more time to comply with the EU's emissions targets.

Statistics:

  • Stellantis faces fines of up to 2.5 billion euros ($2.95 billion) within two to three years due to non-compliance with EU CO2 emission targets.
  • Fines will be based on 2025-2027 emissions rather than just 2025.
  • Stellantis' CO2 emission targets are considered unachievable, leaving the company with limited options to reduce emissions.
  • 2025-2027 is the timeframe for which European car manufacturers must meet the EU's emissions targets.

Sources:

  • "Stellantis may have to close factories due to risk of hefty European Union fines, says Europe Chief" by Marketwatch, no date provided
  • Remarks made by Jean-Philippe Imparato at a conference in the lower house of parliament in Rome, no date provided
  • Marketwatch, "Stellantis may have to close factories due to risk of hefty European Union fines, says Europe Chief," no date provided.

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